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Are you provisioning the user individually or as a group? Do you receive any error message when choosing "New User" in the user maintenance menu after provisoning the user? How many external providers do you have in Shared Services and what is the order of the user directories for lookup?
As long as you have provisioned the user in HSS individually and not as part of a group then there should not be an issue. Remenber Group provisioning is not supported by FDM
The problem was in Shared Services.
A password was changed and all synchonisation between SS & FDM was broken.